Lowest weekly jobless claim in five years means companies should invest in new payroll technology
June 14, 2013
The latest report on jobless claims revealed positive news for the economy, and businesses should be preparing for what is to come next with high-quality payroll technology. The amount of jobless claims is reportedly close to the lowest it has been in five years in the United States. Small businesses adjusting their workforce to welcome the increase in demand and fulfill the need for more employees will need to invest in payroll software to weather the changes and grow successfully. The Chicago Tribune reported that the Labor Department released these promising figures on Thursday - figures that are better than many economists' expectations.
State unemployment numbers decreased by 12,000 for the week, resulting in an approximate 334,000 Americans filing for unemployment benefits. This is the smallest amount of first-time applications since May, which recorded rates similar to pre-recession levels. This is incredibly positive news for the business world as it shows the economy is on its way to stabilizing. Businesses may have higher consumer confidence and an increase in product demand to look forward to in the near future. This would mean that hiring patterns may improve and small companies will be able to expand their workforce. In these cases, small business payroll tax software will be necessary to accurately manage employees' pay.
Why jobless claims are decreasing and what businesses can do to adjust
The low jobless claims numbers are said to be due to increasing consumer confidence and less pressure for employers to layoff staff, according to NBC News. Companies have been slow to start hiring again because of the struggles they faced at the beginning of the year with the fiscal cliff and a hesitance to invest in new workers without the promise of a stable economy. However, businesses are gaining momentum and seeing the need to increase hiring. These efforts are in response to a potential future demand for products or services.
As businesses adjust to the changes in the economy and job market, they will need to invest in the technology necessary to maintain a strong workforce, achieve industry compliance and support growth initiatives. Instead of constantly worrying about any uncertainties about the near future, as many have done within recent years, firms should think about the long-term effects of their actions and make strong decisions that will ensure the success of their organization years down the road. While it is important to have caution and make smart choices about the company's operations, it is time to start preparing the business to better handle future economic advancements and growing consumer demand.